Replies to This Discussion

Permalink Reply by Utica Shale on October 8, 2012 at 9:40am

Please explain "Direct Drilling Company" ?

 

Permalink Reply by Indiana Smith on October 10, 2012 at 9:44am

I know that there is one landowner in the Homeworth/North Georgetown area that is working on obtaining the permits so that he can hire a driller to drill a horizontal well on his farm.  I'm not sure how far into the process he is, but he has been working on it for about 6 months.

Permalink Reply by Utica Shale on October 10, 2012 at 10:24am

Indiana,

 If the entire pad, all laterals and the entire drainage area could be contained within your own property boundaries then that is a smaller liability. But what if this project spills over into your neighbors property? Could you withstand a multi-million dollar lawsuit from a neighbor who sues you because they claim you have poisoned their water well? Now what if there is a fire, an explosion or a death on the job site or near pipes leaving your property? Do you have insurance that will cover that? Yes, the driller should be fully insured but you as the well owner & permit holder will be named in the law suit, too. Big Risk vs Big Payday !!!

 

 There was a huge explosion and a giant fireball that burned for about 30 minutes from a broken gas pipe in Columbiana  County, about 1 year ago.

 

 

Permalink Reply by Indiana Smith on October 11, 2012 at 1:15am

Utica,

I agree that it is a huge risk.  He's a pretty shrewd businessman and I'm sure that he has considered all the angles.

I am well aware of the fireball from the Tennessee Pipeline explosion.  And it actually burned for about 3 hours.  El Paso Corp got off VERY lucky on that catastrophe.  People could have died.  I think about it every time one of these pipeline ROW agents call me. 

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• pipelinefire.jpg, 86 KB
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Permalink Reply by Utica Shale on October 11, 2012 at 1:51am

Indiana,

 I wonder ...

 How would the Landowner and the "Direct" Driller split the costs and the royalties?

 

Permalink Reply by Sean Zentner on October 11, 2012 at 8:03am

Yes it is definitely a bigger risk but it must be a much bigger reward.  If any of that happen with anyone it would be trouble if you were the landowner.